Flutter revenue climbs, profit collapses
Although fourth-quarter revenue for Flutter Entertainment grew 25% to reach US$4.7 billion, the FanDuel parent company saw profits crater from US$156 million in 2024’s final quarter to US$10 million, a 94% collapse.
Full-year revenue went up 17% to US$16.3 billion but Flutter posted a year-end loss of US$407 million. The numbers were disclosed after the end of trading on 26 February.
Cash flow swelled 27% to US$655 million for the quarter and was up to US$2.8 billion for the year, a 21% improvement. Investors realized a loss of US$0.05 per share for the quarter and US$1.75 for all of 2025.
The full-year loss was attributed to India’s ban on igaming, which resulted in a US$556 million write down for Flutter. An additional US$1 billion was returned to shareholders in the form of stock buybacks.
FanDuel ended the year with a 41% share of US sports book revenue and 28% of igaming dollars. The company also spent US$45 million towards the launch of FanDuel Predicts, its event-contract product.
Domestic revenues were up 33%, driven by a 35% increase for FanDuel’s online sports betting and 33% more igaming winnings. Handle, however, grew but 3%, a trend that Flutter said has persisted into early 2026. The company blamed “unfavorable recycling impact from sustained, bookmaker-friendly sports results.”
The company complained of “lower levels of customer engagement into 2026.” It said, “This was compounded by less compelling player narratives in the closing stages of the NFL season. Outside of NFL, handle year-over-year trends improved month-on-month in February.”
Bright spots included FanDuel’s Missouri launch, which resulted in the Show Me State’s leading share of OSB revenue and handle, as well customer acquisitions that the company said were better than expected.
FanDuel Predicts was described as being active for non-sports wagering in all 50 American states, with sports wagers being offered in the 18 that do not have traditional OSB. FanDuel was responsible for US$310 million in fourth-quarter cash flow, a 90% increase.
Internationally derived revenues grew 19%, driven primarily by a 31% surge in igaming. Non-US OSB was up 6%. Adverse sports results were faulted for an 11% slump in “organic” OSB. International cash flow hopped 6% to US$588 million.
Looking ahead through 2026, FanDuel projected revenue of US$18.4 billion, of which US$7.8 billion would be US-derived. Cash flow is expected to approach US$3 billion, a third of it from the US. A negative return on investment of US$200 million to US$300 million was forecast.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Setting the stage
Flutter Entertainment’s latest results land after a year of sharp pivots between growth and growing pains. The FanDuel owner has been riding robust U.S. demand for online sports betting and casinos while navigating unfavorable sports outcomes, regulatory shocks and heavy investment. The backstory shows how those crosscurrents set up the apparent contradiction now on display: rising revenue coupled with collapsing profit.
From fourth-quarter rebound to mixed signals
Flutter closed 2024 on a high note, reversing a year-earlier loss to post a fourth-quarter profit and expanding revenue. The company swung from a US$902 million loss in late 2023 to a US$156 million profit in the fourth quarter of 2024, with revenue up 14% to US$3.7 billion and cash flow inching higher. Management credited product improvements, market share gains in the United Kingdom and Italy, and solid U.S. engagement across the NFL, NBA and NRL despite what it called the worst run of bettor-friendly NFL results in two decades. Yet even in that upbeat print, Flutter warned that sports outcomes would continue to inject volatility and that new-market launches in Missouri and Alberta would weigh on near-term returns.
The quarter also underscored the group’s reliance on structural margin improvements. Flutter said migration to higher-margin Same Game Parlay products helped offset slowing handle growth. That detail foreshadowed a recurring theme: top-line health can coexist with pressure below the surface if trading results turn customer-friendly or if handle slows. Management telegraphed as much heading into 2025, pointing to a “broadly neutral” start to the year as January results cut into a positive Super Bowl.
A profitable first quarter, then an earnings squeeze
Early 2025 reinforced the split picture. Flutter reported a US$335 million profit in the first quarter, reversing a year-ago loss, on US$3.7 billion of revenue and 20% higher cash flow. Sports betting handle grew eight percent, though the company trimmed full-year U.S. guidance while lifting international expectations. Management emphasized that near-term sports results can whipsaw quarterly performance, but that the long-term growth model remained intact, propelled by local “hero” brands and shared global technology.
By the second quarter, headline growth persisted but profit compressed. Flutter lifted Q2 revenue 16% year over year to US$4.2 billion as average monthly players grew 11%, yet profit fell 88% to US$37 million on a non-cash charge. U.S. iGaming revenue surged 42% and sports betting rose 11%, helped by favorable outcomes and an extended NBA postseason. International revenue and cash flow increased in the mid-teens as the company integrated acquisitions in Italy and Brazil, with non-U.S. sportsbook growth muted by tough comparisons to the prior year’s European Football Championships and adverse results. The quarter captured Flutter’s operating equation: user growth and strong iGaming can be overshadowed by swings in accounting charges or sports trading.
U.S. momentum meets tougher math
FanDuel remains the growth engine, but its gains are colliding with thinner betting math and softer engagement patches. Flutter has repeatedly flagged a disconnect between revenue and handle. Lower handle growth in late 2024 and early 2025, compounded by streaks of bookmaker-unfriendly results, pressured near-term profitability even as the product mix skewed to higher-margin parlays. That tension reappears in the latest figures with U.S. revenue still expanding, market share leadership intact and cash generation strong, yet bottom-line results under strain.
The state-level backdrop is supportive. New Jersey’s maturing market offers a read-through on iGaming depth and operator scale. In May, New Jersey online gaming revenue jumped 28.5% year over year to US$246.8 million, with Golden Nugget Atlantic City and Borgata leading gains and seven of eight casinos posting increases. Sustained double-digit growth in a mature state highlights the runway for digital casino, a segment where FanDuel’s share is rising and where revenue is less exposed to weekly sports variance. That cushion matters when football narratives fade or outcomes break the wrong way for books.
At the same time, Flutter is experimenting at the edges of the U.S. market with new formats. Management has highlighted event-contract offerings under the FanDuel Predicts brand, positioning them as complementary to traditional books and as a way to reach users in jurisdictions without full sports betting. While analysts have downplayed the impact to date, the company’s willingness to invest in adjacent products underscores a strategy to widen engagement and diversify revenue sources even if the payback is uneven in the short run.
International expansion cushions the blows
Outside the U.S., Flutter is leaning on iGaming strength and dealmaking to stabilize results. The company’s integration of SNAI in Italy and NSX in Brazil lifted international revenue and cash flow in Q2, while non-U.S. sportsbook comparisons remained tough. Management has argued that scale, local brands and shared global tech — the so-called “Flutter Edge” — let it monetize users more efficiently across markets. That showed up in first-quarter guidance, which raised international revenue expectations even as U.S. projections were trimmed.
Broader industry signals support the iGaming thesis. Suppliers tied to digital casino are reporting steady gains, suggesting that operator pipelines remain active. For example, Inspired Entertainment said interactive revenue rose 45% year over year in the fourth quarter, driven by demand in the U.K., North America and continental Europe. While supplier growth does not map one-for-one to operator P&L, it points to continued investment in content and formats that can sustain engagement beyond major sports cycles — a useful counterweight when sportsbook results dent margins.
International exposure does carry risks. Currency swings, local regulations and market-specific sports calendars can all distort quarter-to-quarter results. Flutter’s write-downs tied to regulatory change — like India’s ban on iGaming — show how fast policy can upend assumptions. The company’s cadence of acquisitions and market entries can also suppress near-term returns as integration costs and launch expenses run ahead of revenue.
What to watch next
The throughline across recent prints is that Flutter can grow revenue at scale while profit lurches with sports results, accounting charges and investment timing. The U.S. remains the swing factor given FanDuel’s leading share, but the iGaming mix and state momentum offer buffers when handle slows or outcomes turn. International growth and acquisitions have added breadth, though policy risk and seasonal sports dynamics inject noise.
For investors, the key markers are engagement and cash generation. Flutter has continued to post double-digit user growth and solid cash flow even in choppy quarters. Watch whether handle reaccelerates into the NFL season, how parlay mix evolves and whether new products like event contracts contribute meaningfully to retention. Internationally, track integration milestones in Italy and Brazil, which will test the company’s scale thesis. The latest quarter’s collapse in profit despite higher revenue fits the pattern established over the past year: a business with durable top-line momentum that still swings hard on the bottom line, with strategy aimed at smoothing those arcs over time.
